Solves funding - 28 Billion in Taxes
Koslow 16 (Tyler Koslow is a Brooklyn-based freelance writer with an intensive focus on
technology, social justice, health and fitness, politics, and current events. He has an EnglishCreative Writing degree from The University of Central Florida; “Cannabis By The Numbers: How
Much Money Will States Bring in From Marijuana in 2016?” Merry Jane; May 17, 2016;
https://merryjane.com/news/cannabis-by-the-numbers-how-much-money-will-states-bring-infrom-marijuana-in-2016 ) //almond
Nationwide marijuana legalization could produce up to $28 billion in yearly tax revenue a
new study found. ¶ It’s been a pretty promising start for the marijuana industry across the
United States. ¶ We’re almost halfway through 2016, and marijuana tax collections in Colorado and
Washington have exceeded initial estimates.¶ For instance, Colorado's cannabis industry brought in more
than $270 million in the first quarter of 2016 alone.¶ New analysis from the Tax Foundation
found nationwide legalization of marijuana could generate up to $28 billion in tax
revenues
for federal, state, and local governments.¶ That includes $7 billion in federal revenue, $5.5 billion from business taxes, and $1.5 billion from income and payroll taxes, the report outlined. ¶ Colorado's
recreational marijuana industry has longtime been the poster child for pot profit. As Washington and Oregon chime in to flaunt tax revenue from marijuana sales, there’s a great chance that other states will start to follow suit. ¶
Alaska and the District of Columbia, where marijuana has been fully legalized for recreational
purposes, are also showing strong signs for a profitable year in its new, but fast growing
cannabis industry ¶
Washington state is planning for exponential growth in tax revenue
coming from its booming business. ¶ According to Bloomberg, the state expects to pull in $154.6
million in taxes alone, which they expect to eventually exceed $1 billion after four years.¶ Last year alone,
dispensaries in Washington sold an estimated $257 million worth of marijuana-related products.¶ Oregon¶ Oregon
is also seeing positive effects since recreational legalization. The Beaver State has projected the market is worth nearly $300 million.¶ In January,
Oregon began collecting a 25% tax from recreational marijuana sales. In one month alone, marijuana sales from the state's 309
dispensaries were projected to bring in roughly $14 million.¶ The newly implemented sales tax has assumedly made the state of
Oregon extremely pleased, considering that over the month of February they reported a tax revenue of $3.48 million.¶ These cannabis sales aren’t just filling the pockets of the growers and
. Washington¶
government either, in some states they are helping a worthy cause. ¶ For instance in Oregon, 40% of state tax revenue goes toward education, while another 20% is set to help with mental health and drug services. Additonally close
to 2,200 jobs will be created in the industry during 2016.¶ District of Columbia ¶ The numbers from the District of Columbia are a bit tougher to crunch as the legalization of recreational use there has been met with some criticism
and a lot of obstacles.¶ Although private recreational use was fully legalized back in February 2015, hopeful retailers have been prevented from opening up shop due to blockage from the government, while the legal purchase of
cannabis remains not permitted.¶ This has led to a massive amount of street sales, which are generally quite hard to keep track of. ¶ Locally-based grow operations like Alternative Solutions, which is one of seven facilities in
California ¶ It also seems that
is helping their medical cannabis industry
Washington DC authorized to grow marijuana, are starting to see life in this relatively small market, and in three harvests since November 2015, they’ve brought in a revenue of $700,000.¶
new legal framework in California—such as the state’s newly signed Medical Marijuana Regulation and Safety Act (MMRSA)—
blossom as well. One California-based cannabis-focused agriculture company called Terra Tech saw a revenue growth of 103% in the first quarter of 2016 alone, bringing in a total revenue of $1.5 million so far
this year.¶ The state of California, which is set to vote on a ballot to fully legalize recreational use in November, is truly the cream of the cannabis
crop. Last year, medical dispensaries in California sold a whopping $2.7 billion worth of
marijuana-related products, which accounted for almost half of the country’s legal sales.¶ At this point, for
California, it seems that legalization of recreational use is not a matter of ‘if’ but rather ‘when’, as laws slowly become more lax and growers continue to build pot farms in the northern part of state.¶
Full
legalization of recreational use in California would be the true game-changer for the
industry.
The Drug Policy Alliance estimates that, if California fully legalized and taxed marijuana,
they would bring in an annual revenue of $1.4
billion dollars on its own.¶ National Market ¶ The overall US market is set to expand quite
handsomely this year, as a recent report by New Frontier and ArcView Market Research projected the country’s overall marijuana market to reach $7.1 billion by the end of 2016.¶ Looking further into
the future, the Marijuana Business Daily estimtes that the US cannabis industry could be worth $44 billion annually by 2020.¶ As for the handful of cannabis-related stocks, such as the UK-based GW Pharmaceuticals or Insys
there seems to be an opportunity for profitable investment, as both stocks have shown a
steady upward climb as of late.¶ But it’s important to note that the marijuana stock market can still be extremely volatile, especially as the
federal government continues to push back against the efforts for full legalization.¶ As profitable
Therapeutics,
as the marijuana industry has become across the United States, there are still hundreds of
pounds and millions of dollars worth of pot being confiscated by the police on a daily basis
around the country.¶ Last year alone, the DEA destroyed approximately $18 million worth a marijuana plants, which—surprise, surprise—costs federal taxpayers about $950,000.¶ All the while, states that
have medicinally legalized marijuana, such as Michigan, have already seen dozens of dispensary raids to start off 2016. ¶
So, although things are looking optimistic
for the marijuana industry overall, it’s important to stay precarious about the continuing
drug busts, dispensary raids, and the federal government’s refusal to acknowledge the
fact
that almost half of the states in the United States have either legalized medicinal or recreational use of marijuana